Global Propylene capacity is poised to see considerable growth over the next five years, potentially increasing from 143.95 million tonnes per annum (mtpa) in 2021 to 199.86 mtpa in 2026, registering total growth of 39%.
GlobalData’s latest report, ‘Global Propylene Industry Outlook to 2026 – Capacity and Capital Expenditure Forecasts with Details of All Active and Planned Plants’ states that Asia leads with the largest capacity additions for the new build and expansion of the existing propylene projects by 2026.
Asia is expected to add a capacity of 34.86 mtpa from 59 new built planned and announced projects, whereas, for the expansion of the existing propylene projects, the region is expected to add a capacity of 0.32 mtpa from five planned and announced projects.
In Asia, China leads with the largest capacity additions, with a capacity of 22.74 mtpa from 38 planned projects. The main capacity addition will be from a planned project, Shandong Yulong Petrochemical Longkou Propylene Plant 1, with a capacity of 2.30 mtpa. It is expected to commence production of Propylene in 2025.
The Middle East has 17 planned and announced projects, accounting for about 6.12 mtpa of capacity by 2026. Among the Middle Eastern countries, Iran would dominate with a capacity of 3.47 mtpa by 2026. Major capacity additions will be from an announced project, The National Petrochemical Company Mahshahr Propylene Plant.
The country is expected to spend a capital expenditure (capex) of $2.84 billion. Oriental Energy Co Ltd, Shandong Yulong Petrochemical Ltd and Indian Oil Corp Ltd will be the top three companies globally in terms of planned and announced propylene capacity additions over the upcoming years.
